TLDR
- WBD stock jumped 10% after announcing strategic review including potential sale
- Board rejected Paramount Skydance bid near $24 per share as insufficient
- Netflix and Comcast reportedly among interested buyers
- Stock up 75% year-to-date, trading around $20.33
- Company still planning split into two entities while exploring options
Warner Bros. Discovery dropped a bombshell Tuesday. The company is officially open to selling itself.
WBD announced it’s expanding its strategic review after receiving unsolicited acquisition interest from multiple parties. The stock rocketed 10% higher on the news.
Warner Bros. Discovery, Inc., WBD
Shares closed around $20.33, capping a monster year. The stock has climbed roughly 75% since January.
The announcement came with a twist. WBD’s board already rejected one offer.
Sources say the company turned down a Netflix-backed Paramount Skydance bid worth nearly $24 per share. That would have valued the entire company at roughly $60 billion.
Board members called it too low. The rejection only intensified interest from other suitors.
CEO David Zaslav didn’t seem surprised by the attention. He said the market is recognizing the value in WBD’s content portfolio.
That portfolio includes HBO Max, CNN, DC Comics, Harry Potter, and Game of Thrones. It’s premium intellectual property that buyers want.
Who Wants to Buy WBD?
Netflix and Comcast lead the list of rumored suitors, according to CNBC sources. Neither company commented on the reports.
Netflix’s interest raises eyebrows. The streaming leader typically avoids legacy media companies.
But sources say Netflix wants to prevent WBD from landing in a competitor’s hands at a discount. It’s a defensive play.
Comcast already owns NBCUniversal. The company will evaluate WBD but feels no pressure to act, sources told CNBC.
WBD said it will consider all options. That includes an outright sale, the previously announced split, or some combination.
The company announced plans earlier this year to separate into two entities. One would house streaming and studios, the other would contain cable networks.
WBD says it’s moving forward with that split while reviewing alternatives. The strategy keeps negotiating leverage alive.
Financial Picture Complicates Sale
Any buyer faces a challenge. WBD carries roughly $35 billion in debt.
That debt stems from the 2022 WarnerMedia and Discovery merger. Management has worked to reduce it, targeting $30 billion by year-end.
But that’s still a massive obligation for potential acquirers to absorb. It could limit what companies will pay.
The business shows mixed performance. Streaming finally turned profitable.
WBD added 3.4 million subscribers in Q2 2025. The streaming division posted $293 million in profit versus a $107 million loss last year.
Hit movies like “The Minecraft Movie” boosted studio revenue 55% in Q2. The company earned $0.63 per share, beating estimates.
The cable side tells a different story. Network revenue dropped 9% year-over-year as cord-cutting accelerates.
What Analysts Think
Wall Street remains divided on WBD stock. Bank of America values the company at $30 per share in a takeover scenario.
But the average analyst price target sits around $16-17, below current levels. KeyBanc warned the rally may have run too far ahead of fundamentals.
The next test comes November 6 when WBD reports Q3 earnings. Investors will watch for updates on the strategic review and subscriber growth.
WBD emphasized it has no deadline and no guarantee a deal happens. The company is weighing all paths to maximize shareholder value.
For now, the market is betting on a positive outcome. Whether that’s a lucrative sale or successful split remains to be seen.
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